Social Stock Exchange as a Catalyst in the Impact Ecosystem
This resource, brought to you by Sattva Knowledge Institute (SKI), in association with Hemant Gupta (Head, Social Stock Exchange at BSE), discusses the evolution of the social stock exchange in India, and how it can bridge the funding gap for non-profits by incorporating blended finance models that are instrumental in de-risking investments and catalysing change.
The session covered the following questions:
- How can SSE in India significantly enhance efficiency within the impact ecosystem?
- In what ways can SSE serve as a vehicle for unlocking additional capital through innovative finance mechanisms, de-risking investments and attracting a wider pool of capital?
- What pivotal role can SSEs play in nurturing innovation and entrepreneurship in India?
- How will SSEs evolve to broaden their reach and inclusivity, ensuring that a diverse array of organisations, including smaller entities like FPOs and SHGs, can fully reap the benefits of this platform?
This resource contains an at length video and also a short summary video explaining the concepts mentioned above.
Organisational leadership and people who want to understand more about SSE can use this resource.
Resource Summary:
The session began with an overview of the philanthropic landscape in India, which has seen a substantial increase in private sector funding, reaching ₹60,000 crores in 2022. The session underscored the transformative shift towards more structured and informed philanthropy, highlighting the trend of catalytic donations. This approach places emphasis on three aspects: the nature of required capital, the journey of philanthropic funds, and the specific issues to be addressed.
A pivotal facet of this transformation revolves around blended finance models, instrumental in de-risking investments and catalysing change. Blended finance deploys philanthropic capital to attract commercial investors to the development sector, bridging the investment gap and making it more appealing to private investors. The synergistic risk-sharing mechanism encourages a more attractive investment climate and fosters collaboration among stakeholders.
Mr. Hemant Gupta shared insights into the immense potential of the Social Stock Exchange, where non-profit organisations (NPOs) and for-profit social purpose organisations come together with catalytic donors and investors willing to take calculated risks (read more about the SSE here). He elaborated on how international experiences with SSEs influenced the design of India’s SSE, including eligibility criteria and fundraising instruments. Furthermore, he provided a glimpse of SSE’s anticipated evolution over the next 3-10 years and shed light on potential challenges social enterprises might face when transitioning from traditional funding models to raising capital through the Social Stock Exchange.
It also highlights the immense potential of SSE and the potential challenges that organisations might face when transitioning from traditional funding models to raising capital through the Social Stock Exchange.
